Which one of the following is an example of the circular flow of GDP and shows the interdependence of households and firms?
a. Households demand their resources from the firms in the resource market and, in turn, supply in the product market the goods and services produced by firms
b. The firms go to the resource market to supply resources that households demand and, inin turn, provide households with the goods and services produced for the product market.
c. Households supply resources to firms in the resource market and, in turn, demand in the product market the goods and services produced by the firms.
d. The firms in the resource market pay to households in the form of wages, interest, rent, and profit—for resources demanded.
e. The circuit is completed when the payments flow from households, through the product market, and to the firms for the goods and services they demand.
C
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The R2 of a regression ranges from ________ to ________.
A) 0; 1 B) -1; 1 C) -2; 2 D) 0; 2
The opportunity cost of holding money is
a. the dollar cost necessary to change other assets into money b. the time cost of accessing funds c. the value of the goods and services a person is able to obtain with the money d. the interest a person could have earned by holding other forms of wealth instead e. zero, because opportunity costs only apply to real assets, goods and services
If the government wishes to maintain a balanced budget during a recession, it must
A. increase taxes, decrease transfer payments, and/or decrease government spending. B. decrease taxes, decrease government spending, and/or decrease transfer payments. C. decrease taxes, increase transfer payments, and/or decrease government spending. D. increase taxes, increase government spending, and/or increase transfer payments.
The natural rate of unemployment is the:
A. unemployment rate experienced at the depth of a depression. B. full-employment unemployment rate. C. unemployment rate experienced by the least-skilled workers in the economy. D. unemployment rate experienced by the most-skilled workers in the economy.